In his June 1938 talk, President J. Ruben Clark is trying to point out how big of a burden debts can be because of the interest that continually accumulates against you.
In a general conference talk given in October 1998, President Hinckley talked about the astonishing number of people who are living beyond their means, even living off of debt. He prophesied, “There is a portent of stormy weather ahead to which we had better give heed.” A few months later, the stock market began a major decline and the economy entered into a period of recession from the events of September 11, 2001.
The prophets and apostles have specified that the two debts that are okay to incur are the debt needed to acquire a modest home and the debt needed to pay for education.
Five reasons why people go into debt are the following: (1) ignorance, (2) carelessness, (3) compulsiveness, (4) pride, and (5) necessity. These five reasons give way to (1) wisdom, (2) exactness, (3) diligence, (4) humility, and (5) self-reliance.
The first signal that you are entering into the debt cycle is when you begin to spend more than you earn.
